Vega Arc Posts November Results. Up 9.18% for the month. Up 52.36% for the year!
I am sorry I am late with this post.
During November we held 10 positions - a full allocation, and no cash. Here are the results compared to our benchmark of the tech ETF XLK:
December 31, 2018 VEGA ARC $11,000
January 31, 2019 VEGA ARC $14,442 +31.29% XLK +6.94%
February 28, 2019 VEGA ARC $16,484 +14.14% XLK +6.91%
March 30, 2019 VEGA ARC $17,065 +3.53% XLK +4.77%
April 30, 2019 VEGA ARC $16,370 -4.07% XLK +4.67
May 31, 2019 VEGA ARC $15,841 -3.23% XLK -8.66%
June 30, 2019 VEGA ARC $17,311 +9.28% XLK +8.94%
July 31, 2019 VEGA ARC $17,866 +3.21% XLK +3.50
August 31, 2019 VEGA ARC $16,486 -7.72% XLK -1.54%
September 30, 2019 VEGA ARC $14,899 -9.63% XLK +1.58
October 31, 2019 VEGA ARC $14,899 +3.04% XLK +3.9%
November 30, 2019 VEGA ARC $$16,760 +9.18% XLK +5.37%
Year to Date: VEGA ARC +52.36% XLK +43.6%
This past month we owned the stocks of 10 companies. We were fully allocated. 7 positions posted gains. 3 posted losses. We were up 9.18%% and we beat our benchmark.
For December we have 10 holdings. We kept all 10 holdings. Long term trends are positive. and generally speaking interest rate cuts boost stocks. For December we reviewed and charted 119 companies. We used various indicators on short-term, middle-term and longer-term time frames. We seek companies that have a high probability of intermediate-term growth. From that group, we selected the 10 holdings for this coming month.
VEGA ARC Year-To-Date for 2019 is up 52.36%.
As we approach year-end we are reviewing every aspect of the model. While we are pleased with the performance but we do not like the volatility the model experienced and the potential for significant downturns. We expected better performance in weak overall market months. This has not occurred. We have also not significantly beat our benchmark. We perhaps will broaden the model to use short positions when the market rolls over, and we are considering using leverage when market conditions warrant. While that will increase volatility we may gain more protection in down month and enhance our gains in up months. We will backtest several years to see if the strategy is viable.
About VEGA ARC:
January 1st of 2019 we launched and are testing a new investment model. It is called VEGA ARC.
We have researched and developed a pool of about 150 companies that are innovators in the genome, industrial, next-generation web, and financial tech. From that group, we will look for the top 10 growth and trend characteristics from charting each company on various time frames. We will hold 10 securities each month and buy in equal weights. Ongoing, on or about the first of each month we may hold or sell any of our 10 picks. If we sell a holding we will select new alternatives. If no investments meet our rules we will go to cash. Vega Arc contains volatile and higher risk companies, it represents only a small portion of our overall portfolio.
The investment picks may be in small-cap, mid-cap or large-cap companies. We will invest in foreign companies. We do not use leverage. We do not short companies. We do not use options.
We hope to make Vega Arc details available in a paid newsletter in July of 2019. Please check back for details.
Chris Vig is president of The Vig Company and is an investor, artist, author, business consultant and former CEO living in Monona, WI. This article is for entertainment purposes only. We may own, buy, or sell any security listed here at any time. Do your own diligence when investing your hard-earned cash. Follow The Vig Company on Facebook.